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tv   Varney Company  FOX Business  April 17, 2013 9:20am-11:00am EDT

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♪ sweet caroline ♪ ♪ good times never seemed so good ♪ ♪ i've been inclined be to believe they never would ♪ ♪ but now i ♪ ♪ imus in the morning ♪ >> the boston bombing, blame the sequester? yes, it's come to this. good morning, everyone, within 48 hours top democrats politicized the patriot day outrage. steny hoyer suggests spending cuts hurt our intelligence
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gathering capabilities and barney frank pushes for and suggesting that the sequester cut the first responders, the president threatened armageddon if we cut spending. and democrats found links between cuts and bombs. is that legit? "varney & company" about to begin. all markets down. a lot can happen in a second. with fidelity's guarante one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
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>> good morning, everyone, our top story, the polittization of boston. and listen to this. >> we know that first responders are being cut. we know that community policing is being cut. we know that health care services, especially emergency health care services are being cut. stuart: he's not the only one. steny hoyer, the second ranking democrat in the house says the
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bombing is proof that some of the sequester cuts were irrational. art laffer is with me. is there any truth in the sequester bombing link? >> no, there's not. it's sad to see people in the heat of battle say things they wished they hadn't said. i'm sure that steny hoyer on reflection wouldn't have said things like that. and they're excited about the political debate and it's like a family fight and you say things you don't mean and i wish they hadn't said it, but it's not true, as you know. it's just sad. >> okay. art, stay right there, please, we're coming up on the opening of the market and we want to get to you on that in just a moment. and i've got to tell you that the market is going to open today. and big name technology companies are making headlines today. intel, apple, yahoo!. we're not going to forget about gold, that's going to be down a little today as well and oil down again and art laffer is staying with us.
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it's a mercedes-benz through and through. the 2013 c-class. starting at $35,350. >> here it comes, the opening bell, we're expecting a 70-point loss. before we get to that here is larry leffen joining us from chicago. everything is down, oil, gold, stocks. do you have a reason du jour,
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larry? >> i think that stocks are down. we've got a little profit taking from yesterday, stuart and people are using this opportunity, a big drop obviously on monday, an unfortunate day, as far as gold and oil, there's an awful lot of margin calls out there. the chicago board of trade. a lot of of people are long gold and they've got a situation where they have to get out or put more money up and a lot of people are getting out. and see a lot of people here. >> try this fast. everybody is printing money, but it doesn't work anymore and it doesn't work like it used to. what do you say to that? >> well, i would agree that you know, nothing lasts forever and not as good when they first did it. the first q-e 2 was awesome and the next-- the market may reflect that. stuart: if ben can't crank up the market by printing money, what will, i'd like to know. larry, we're out of time, that opening bell is coming up fast. let's get to the opening of the
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stock market, as i said we're expecting a loss of 70 points, very roughly, 70 points. we had a bounce yesterday, 150. and giving back probably 60 points at the opening bell today. there it goes. the bell is ringing and they start trading soon. 60, 70 points down when everything is opened up. now, we're he not going to ignore the price of gold or oil. it's a down day across the board and that's what we're looking at in the very early going this wednesday morning. now, the mobile world, we know that, the shrinking pc market, that really hit intel's profits. its revenue from pc sales were down 6% and profits overall down 25%, and we in the past have put the personal computer on death watch. intel's numbers appear to maybe back us up is little there. and expectations are low, and that stock is nod badly off. down 1%. number two, yahoo! apparently,
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there are disappointing numbers from display ads. nicole understands all of this. and she's got the stock price, go. >> the display ad, when you talk about that is for yahoo! and really accounts for roughly 40% of yahoo!'s revenue and they saw that display ad revenue drop 11%. and that's not good news. so, if the revenue that came in shy of wall street's estimate, see the stock down slightly. however, a couple of good points. number one, sub20% this year and number two, bank of america, merrill lynch say buy. steeple nicholas, buy. go figure. >> it's not down that much. 11% drop in ad revenue there and pop up, actually. it's not that bad, actually. >> yeah, but the forecast for the second quarter net revenue, that is also below the street. >> down 1%, we'll leave it at that. and here is the real headline of the day and it's from apple.
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digi-times ipads maybe 30% down. apple stock below the first time in a year and three firms lowered the price target and now it's at 417 down nearly 2% this morning. that's another big drop. this thing was $700 just last fall. okay. and a few minutes into the trading session. check the big board, got it right. we were down, and expected to be down 70 and we're down 77 as of right now and puts us back and price of gold. 1384 there. this time a week ago you weren't expecting that. the price of oil dropped to 88 yesterday and we're down to 87 today, down another dollar and everything is down across the board. let's not forget about what you're paying at the pump. this may be good news and it
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affects your wallet every day. back to 351. i would expect that to fall sharply soon because of the big drop in oil. that's your market snapshot and let's get back to art laffer with the big economic picture. come back in. i'm going to give you my opinion for what it's usually worth. i think the markets are headed south because the u.s. economy is headed south. lots of negative indicators recently, what do you say? >> i think that the u.s. economy is already in the south. if you will, and we don't show many signs of coming back, because of very bad policies coming out of washington. i mean, these things should be-- we should be lowering tax rates and broadening the tax base and controlling spending where it should be controlled and having free trade, minimal regulations, but we're going in the wrong direction, stuart. i think you're right. >> what about that question about everybody printing money? well, they are, we know that, but, i don't think it's working this time around. it's just not, you know, juicing
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the stock market like it used to. >> i don't think it used to so i agree with you totally. you can't push on a string and they have been trying to push on a string and if you look at it this is the single worst u.s. recovery in history and obviously, it's the largest single monetary expansion in history. and obviously, they don't work, they just don't work and he's grasping at straws and god knows what type of real problems we'll have down the road when all of this comes home and we have to reverse it. >> art, you've been on this program frequently, recently saying watch out. that election coming up next year, that changes everything. >> i think it does. >> but do you-- >> do you think we can turn around how all economic policy, quit the spending, but let's juice up private sector from the private sector? let's juice up and give us tax decreases and tax cuts. do you think that's going to happen? >> i do, i'm optimistic and have always been, but in 2014, i think we'll take the senate and
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in 2016, the presidency and it doesn't have to be a republican. it can be a jack kennedy democrat and low rate, flat tax, you know, spending restraint and we can get sound money, free trade, mineral regulation and get the heck out of the way and the way that thatcher did and kennedy did and bill clinton did. this is what we need. >> look, i couldn't agree with you more, i do believe that's exactly what we need. and you think that that will be the expectation for the future. >> yes. >> and the stock market will go up early or middle of next year, because it expects that to happen? >> i think so. i mean, you really, unfortunately in this wonderful economy of ours, i love margaret thatcher's speech she said socialism a wonderful until you run out of other people's money to spend. the truth of the matter is we've run out of other people's money to spend. the party is gone and economy is in terrible shape and now we only have one left, the right answer and we'll do it.
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the republicans weren't much better. the democrats were terrible until jack kennedy came along, you know, it really takes a desperate situation to create a great solution and i think that we're just about there, stuart. >> ouch. >> art laffer, always good. >> my pleasure. >> caterpillar, we call that an indicator of the global economy. but it is down today. all right. nicole, how bad, here we go. >> that's right, we're seeing it to the down side today. right now you can see it down 1.8%, we should note the global indicator is indicating weakness globally because it's the number one loser in the dow jones industrial average this year, down almost 10% and analysts now jumping on board, lowering their targets, so it was down graded at mcquirery from neutral to out perform and jeffries. just a few days ago on april 12th, credit suisse set a price target of 110 from 123 which
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still seems like a rich, but they're more optimistic than the rest. >> i know our viewers can see that on the little bug on the right-hand side of the screen. yeah, we're down 102 points for the dow jones industrial average. as we said earlier, it's a down day all across the board. oil down to 87 and the dow is down and price of gold is retreating further from $1400 an ounce. is it a global slowdown? is it the failure of money printing to create an upswing in the stock market? maybe all of the above? but we are having a down day right now. and i got a new report for you. it's going to get you fired up. td ameritrade says the average investor is still on the sidelines. missed the rally and missed the selloff. did not cash in. that's a big deal. the little guy is sitting this thing out and still doesn't trust wall street and that's a very big deal. we'll cover it for you at ten o'clock this morning. i've got your 7 early movers for
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you. lower than expected quarterly profit at bank of america, it's down 3%. the dutch bank, ing, planning an ipo for the u.s. division. the stock is down overall. toyota's hybrid vehicle sales passed the 5 million mark, it's down a fraction and look at the level. 112 on toyota. regulators decide, to decide, quote, very soon. whether to approve boeing's rehe designed, 787 battery system and boeing holding at $86 a share and better than expected profits of the toy maker, mattel, up nicely, a 4% gain there. the railroad csx, despite a weak coal shipping business, down 2% there. wall street journal reports that procter & gamble plans to increase the time to pay suppliers, 30 days, that frees up 2 billion dollars where the of cash flow he. procter & gamble though down fraction on that news. back to the big board.
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we're down 105 points right now. all right, let's get on with it. a lot of stuff to cover today so briefly here are the stories. we're going to hear from one of the voices on boston on the politicalization. and obamacare fallout, a big company cutting hours to avoid paying for employees and a company to make school busses powered by natural gas and i'm going to ask him he can run it without government subsidies. and playing the blame game, the budget cuts could cause another attack. and what do first responders think about that? we're going to ask one after this. (announcer) scottrade knows our clients trade and invest their own way.
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>> whoa, i want you to look at the share price of apple. that's a new 52-week low. why is that? dig iec d digi times reports apple is at the low he is mark, down 41% since it hit the high last september, last fall certainly. to the big ford, that's not helping stocks, down 118 giving back almost all of the gain, 14-6 where we are now. initial tests were positive, ricin was in a letter mailed to roger wickman of mississippi. the initial test sometimes gives you a false positive. but the latest on boston, the picture on your screen shows a shot before and after the second bomb went off. okay? on the left you can see that brownish bag highlighted right next to a mailbox.
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the picture on the right is after detonation and you can see smoke where the bag was. investigators say they believe it was the bomb, probably a homemade pressure cooker with sn shrapnel. and bo dietl is here and it it seems to me that that bag was in fronts of the crowd barrier, somebody would have had to-- if it was the bomb they would have to lean over that crowd barrier to place it right there. that should have been caught. >> you know, what was told, stuart, they did a sweep an hour before the finals came across the line. because this is two hours after the first-- the witness of the marathon. so, this happened after the fact. and for one good part, if you want to see some good part of
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it, the crowd was less at that point because when they came across that finish line the crowd was enormous and if this would have went off then we would have had a lot more fatalities. >> that narrows the time when you look at all and all videotape of that family of that spot. >> anyone who has family members at that time, i think 09 or 4:09. anybody taking pictures of their loved ones of that finish line, they have to give them to the police because we might take an image or back up an image between before, 20 minutes before when you see someone putting that package down. those are so important. with the advent of our cell phone cameras and all that, i think that's going to be one of the breaks in this case is going to be the material that's turned over to the investigators. stuart: i've got to get into this because we highlighted this first thing this morning. i think that the boston bombing has been politicized.
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steny hoyer say that the sequester cuts affected our intelligence gathering-- that's what he's implying, prior to the bombing. and the others democrats say it affects the payment of first responders like yourself. what do you say. >> they ought to be ashamed of themselves to politicize a tragedy and the guy saying these things something's wrong with his mental state of mind. the fact of the matter it had nothing to do with that. the fact of the matter is this is an open target. we have trains, we have large crowds of people and these are targets. now we're in the-- we don't know if it's a domestic terrorist, someone because it's patriots day or middle east. we don't know yet. it's a flowing investigation, stuart, to take anything like that and use that, that's irresponsible. look at the republican senator, didn't he receive the-- he's a republican and he's supposedly received poison. is that because of the sequester? that's wrong. you know, stuart, the problem is that we've all got to admit to one thing and we all understood
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it. i did the u.s. open back in 2002 after 9/11, we had enormous security. you have the super bowl, trains every day loaded with people at rush hour. this is scary because this could happen on a train, a guy with a backpack. i mean, this is scary because it's in america now. >> is it a new turn? i mean, we have got the idea that you can put guys bad guys in planes and fly them into building. we've hardened the airports and now soft targets. >> since 9/11, i'll be honest, through the intelligence community i've learned that that is one of the reasons they were very afraid. grand central, pen station, you have the group there with the new york city police department, anti-terrorism and you see them coming out of the cars with helmets and rifles, machine guns and go to different parts. and this is one of the fears that we've always had was large groups of people, that is a soft terrible target, very accessible and that's why the people you see something sitting there,
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report it right away. we have a million eyes and ears and don't say i don't want to get involved. get involved. report it, that could save people's lives and you know, stuart, it's scary, real scary because you've got copycats. >> we must not retreat. cannot retreat. >> i'm just praying that it's one psycho pathic lone person with an agenda on his mind i hope it's not an advent of this happening. we can't let the terrorists win. stuart: well said young man. bo dietl. thank you. >> thank you, stuart. stuart: the gold report, 1949 eastern, where are we right now? we're down-- oh, we are up 2 bucks. and using the patriots day attack for political purposes is wrong. it's exploittation of outrage and i'll have my take on that next. it's a brand new start.
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>> and the market may be down today, but we've seen quite a rally, haven't we, in the recent past? the problem is the little guy has not been in it. we've got a report to that effect and we'll tell you the full reporter in just a moment. plus, the supreme court will decide on whether a company can patent a human gene. we've got a doctor against it
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and a lawyer who is arguing for it. that's in our next hour. boston's patriot day attack is not a photo op. it's not a stage for politicians or anybody else to look good for the public. here is my take on the exploitation of outrage. since the bombing the authorities in massachusetts held a series of news conferences and received blanket coverage and local politicians stepped on to the national stage and we watched. what we the viewers wanted was information. that's what a news conference is supposed to be for. what happened, who did it, instead, we saw the authorities congratulating each other for their effort and the stage was jammed with officials, jockeying for a moment in front of the cameras assuring us this or that branch of government was on the job bringing resources to bear and doing a great job. we didn't get much information, a photo op, a moment in the the
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sun for those who need to look good. and contrast that coming from the emergency room after treating the grievously wounded and description of the injuries because of the bomb's shrapnel was truly horrific and told us more than the press conference up the street. america has been attacked again.
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>> did someone put the "sell everything" signal out this
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morning. it's wednesday, april 17th, and all markets down. it is another across the board selloff. the whole world's printing money, but it's not helping the 401(k), is it? a new study says you are thinning out. a lot of you have had it. you don't trust wall street. charles responds to that. the left finds a link between boston and the sequester? the outrage gone political. hear from the voice of boston about that one too. the supreme court mulls the question, can you patent a human jean? so do we, the doctor versus the lawyer. ♪ check the big board, please, down 110 and falling, 146 is where we are now. when we saw this story this morning, we knew when had to ask charles about it.
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tdameirtrade said volume missed exceptions because retail investors, you and i, remain on the sidelines. charles, a, why are so many people out of this, and, b, is that accurate, do you think? >> it is accurate. he said in the beginning, trading rebounded sharply early in the year. people felt this is the year to turn around. this is the same stuff that came out. he talked about europe, sequester, things like that, but the fact of the matter is that there's still, obviously, a whole line of lingering resentment, skepticism, cynicism. a week ago, the american association for individual investors had a survey. there's a full screen because the number came out at 19% of individual investors bullish, just 19%. this is april -- released last week, 19%. now, market highs, the number's typically been 69, 51, 59, 61.
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it was 75%. can you imagine the dow goes up 8,000 points, and we're at the same level of enthusiasm or bullishness as we were in march of 2009. >> they don't trust wall street. >> they don't trust wall street or washington. by the way, i don't trust those entities either, but i still think ibm is a great american company and want to be a part owner of that. this is where you separate it. over the longer term, companies do well. there's insider trading, everything comes out that detour us, hurt our belief in the institutions, but owning a great company, general mills, kellogg, nike, the names are phenomenal at all-time highs and go higher. >> we'll see. i'm looking at apple. actually, what is it now? a 52-week low, way, way down
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again. go ahead, nicole. >> oh, my goodnd, i mean the low today, a new 52-week low. shareholders at $600, saw it going to $700, hoping for a thousand dollars, must be so, so disa.d. granted it it several great years in a row, but, obviously, now down 3%. the ipad miniis part of the problem. the shapements down. i would like an ipad mini, but other people don't want them. >> we have a report from digitimes saying shipments, in other words from the factory to the shop floor, they project down 30%. that is a whopping great big cut in command for ipad minis, huge. >> it is. i don't know that people prefer the bigger tablets or something other than apple. >> good question, but apple stock taking it on the chin.
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down, i think, from the high of last fall, roughly 42, maybe 433% right now. just like that. all right, nicole. i know you're watching it. we'll keep on with that one. thanks very much indeed. another example where some investors may be a bit turned off the stock market. remember the surge in health insurance stocks a couple weeks ago? you could see the big spike in humana, right there, april 2nd. well, today, the "wall street journal" reports a former congressional aid who became a lobbyist leaked information to an investment firm which sparkedded a frenzy of buying. they went straight upright near the end of trading. this is is the issue that the
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fcc, that provides a chill down the spine, the k street lobbyist, but there's a revolving door between washington and wall street. the hedge funds make a lot of money as insiders on the information, and so this is the housing crisis, that's how ground and sweet this is if the fcc can do this against people involved in the area of washington, d.c.. >> intelligence ?urnses company hires lobbyists, people who worked for big corporations, gets information from them, retains the investigate, hedge funds pay the intelligence exeens for the information and trade on it. that's what happened with humana. >> that's right. non-material information that the little guy does not have access to yet.
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it's a huge story if the fcc moves against it. having covered corporate accounting for the "wall street journal" and forbes" that they are out gunned and out manned by the men in washington, d.c., they don't have the budget to fight these things. few prosecutors took cases on insider trading. >> well, people are turned off wall street. they see it, don't like it. 121 # points lower as we speak. again, it's a down day across the board, stocks down, oil down, gold down, that's where we are. medicaid society, fda taking notice, the agency is blocking the approval of generic forms of oxy cot tin. later this hour, the hard numbers on use and abuse in this country. should the government interfere
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in that marketplace in the interest of public safety? good debate, we'll have it, 10:52 this morning. said it all morning, leading democrats politicizing the attack in boston after it happened. frank said the federal government needs to raise taxes to raise revenue so that massachusetts doesn't have to pay to rebuild and to pay for the first responders. hoyer linked it to the sequester cuts saying it's proof the across the board cuts were irrational. joining us is michael gram, michael radio voice. a pleasure. how is boston responding, the people of boston responding to the prettyization of the outrage in your city? > you know, as soon as the bombing occurred, people speculated who did it, for political reasons, here in the home of america's most dedicated liberals, progressives, hate to be political, but they are. oh, those talk radio listeners,
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patriot's day, tax day, must be political. the average we are finding out what happened, the idea there was a security shortage for example that this has something to do with sequester, look at the pictures. cops and doctors everywhere when the bombing occurred because that's an item from the most secure places on planet earth on monday as three o'clock was the finish line at the boston marathon. >> what's the reaction to the press conferences run on this neerk -- networks and other networks run them. the governor of massachusetts standing there, essentially, a photo -- i call it a photo op. what's the response of the people of boston to the press conferences? >> well, you know, we're at the what the heck happened stage in when ed davis comes out, tells us the first night there is no
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suspected, and the tv camera showed a line of cops at the hospital, and the it didn't help very much. you know, they searched the guys participant, no connection to the bombing, move from there, but you mentioned all morning a lack of trust in our institutions. in boston, we are not confident that we're going to get a straight up look at this case because politics intervenes. no one is saying that the cops won't pursue the leads wherever they go, but we know the background. for example, the "new york times" bomber, the times square bomber got on an airplane because no onemented to profile a guy from another country. he was on a list. politics intervenes. we've got our eye out, but right now, we want answers. >> but is the mood a cynical mood or anger? what is it? boston?
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>> it's interesting. my cohost said my anger is in a box ready to go. that's where we are. we want to know who to get angry at. why did the bombing occur? it's a stupid bombing in addition to being evil. the world trade center, you understood the message. the pentagon, you get the point. what's the point of bombing the boston marathon? like, are you angry at, you know, not enough people follow michelle obama's gitelines for dieting? i have no clue. hard to make sense. >> i think it makes sense. i think it does make sense because it's a soft target, high profile, internationally known, and it's a soft target. you hit a soft target, and you do the same thing anywhere around this country, 10 we're all at risk, and that is the message of this bombing. >> but, stu, if you wanted to highlight, get the world's attention, blow up the bombs when the elite runners crossed, when the size of the crowd of observers was at the height, when the international media was
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zoomed in, but waiting an hour and a half, it was the size of the runner's crowd at the height. many of the race fans, if you will, went off. it was just family members and friends there. it's a different attack. i -- i'm very afraid that we're going to find out this was an idiot bombing with the mark david attack on john len non, a nut with something to prove. obviously, the horror is the horror no matter what, but if it's an international narrative, you have sense there. if it was a loonie tunes cook, that's worst. >> right. we appreciate you being with us on a dreadful story. charles? >> this does not end with the idea it was a lone nut. you eluded to the point. this is hijacked for political purposes. you know, this is dove tailed into newtown. this is somehow the second amendment is responsible for this. somehow, hoppest americans, at the end of day, may end up sharing the blame for another catastrophe. >> is it inevitable?
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>> certainly, if it's a lone wolf, somebody's going to try to find out any political -- what tv network did he or she watch, and we only know things are out. >> this is a day to mourn, a time to mourn, help and support the victims' family and justice to get at the families perpetrated. this is not political opportunities. >> with you on that one. pouring over thousands, maybe a million hours of security camera footage of the bombing. hopefully that leads them to find a culprit. there is a question here for our judge. how much freedom are you willing to sacrifice for that security? we ask that question related to the bombings at 10:26 this morning. to nicole, lulu lemon bouncing back after the see-through participants fiasco, now what? >> can you remember that, but i give you credit for saying it. it was a huge problem. they are bouncing back after the
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see-through pants fee fiasco, up 1.5% now. barclays starts them with an overweight rating, a new price target as well. they have an 8 -- $85 target. other analysts upped their targets. what's interesting, though, is that they are popular as it is, yoga wear, year to date, under performing, down 7 #%, but under armor up 16%. nike up 16%. is the see-through pants the real problem or that the pants are a hundred-something dollars, and that's the problem and people are sick of buying them. >> a retailer gets into the news, a good product, gets buzz, the stock goes up, and then plateaus, something happens, and it comes down. that's the pattern with retailers. fashionable, the stock goes up, but doesn't last. that's my opinion. >> i like it. >> thank you, thank you very much indeed. all right, everybody.
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thousands gathered at st. paul's cathedral in london to pay respects to margaret thatcher. lady thatcher received a ceremony state funeral with military honors. dignitaries, 11 prime ministers, and dick cheney all among the mourners, more than 4,000 police officers on patrol and nearby subway stations shut down. she died last week at the age of 87. friday night, buddy.
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>> yahoo profited last quarter, share price down a fraction, but look at the level, $23 a share on yahoo. apple taking a hit this morning, and ipad minishipments drop 20% to 30% because of lack of demand for the product. they are at a new 52-week low, approaching $400 even, 407 right now. the shrinking pc market hit intel. profits down nearly 25%. expectations were even worse so the stock is not down that much. tens of thousands of passengers stranded yesterday after american airlines grounded all u.s. flights. the airline's latest computer reservation system, but back up today. more cults coming to a theater to you because of obamacare. there's a story for you.
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we got that for you in 90 seconds.
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>> breaking news for you, and what i'm going to call the greater to littization of boston. a democrat from delaware says budget concerns do not help in the era of sandy and boston bombings. he said that in a hearing with janet napolitano.
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they link the bombing to the sequester cutting. i calling it the to littization of posten. what do you have here? >> the ambulance chaser stock you like so much reporting here real soon. i just want to say, you know, stocks are under pressure, threatening around where i mentioned it initially. the street's looking for 42 cents, a month ago, looking for 34 cents. i hope it breaks out through 30 on close. >> what's the ambulance chasing angle? >> the guys with the patent controls, give patents, shake down companies for money. >> and you like this company? >> it's cynical, but i like the fact if they devised something in the garage and it's good, this company helping her so that a big company doesn't steal it. >> oh, really, sure of that? that's your interpretation. >> that's my interpretation. >> don't look in my garage, by
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the way. >> happy called the ambulance chasers? >> i'm paraphrasing. >> oh, really? >> csx, crude oil, makes the cars that carries this stuff. it's under pressure, down about a buck from when i mentioned it on the show,ic it's a -- i think it's a great investment. csx earnings report was good. >> a bowl of stocks you brought us, and, yeah, you can make money on them. have you abandoned any of them? >> no, no, not yet. >> good to go, and it's when you make determinations, and by the time the next 30 days are over, a few that have to bite the bullet on. >> the dow jones industrial average this morning right now, as a matter of fact, down 130 points, 14,000. >> hide the women and children. [laughter]
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>> out of sight, baby, out of sight. now this, rei gal cinemas, largest movie theater chain in the country says it'll start cutting hours for thousands of workers to avoid added costs on the obamacare. yet another unintended consequence of the president's -- what was that, affordable care act? right. i know you got it coming. >> mandating 30 hours, mandating anything for businesses, going to cost 3 million jobs in the franchise industry, obamacare. what happens is basically the people who are hiring the individuals are not going to hire because of the costs of obamacare, and, you know, tell you something, timing couldn't be worse because part-time jobs are 8 million. the institute costs restaurants and franchises more than $6 billion to implement. >> the story is about people quitting. to you guy's point, starting as full-time employment, we cut
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your hours back, 10 hours a day cut back, that's an automatic 25% cut in your pay. people are saying, i can't take a 25% pay cut. >> two jobs, then i take two jobs. >> nay are doing that, a job at mcdonald's and wendys. obama mandates a 0 -- 30-hour workweek so they are dropped to 29 hours. >> they don't mandate 30 # hours, but if you work 30 hours, your employer has to cover you. >> thank you for the clarification, that's exactly right. >> like the story yesterday. >> i hope we get that rivetting story again. >> if you like, i'll do it for you again. my story -- okay, we'll wait. >> thrilled, can't wait. >> my take ton this thing. >> all right. >> here's a question for you. how much freedom are you willing to sacrifice for security? we got a question about the boston bombings and the cameras that the police want to see. here comes the judge after this.
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>> dow jones down, all markets down 126, but, please, the stock to watch is apple. look at this. down $20 a share. that is almost 5%. here's the reason. 403 was the low. it was down 403 moments ago, now
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406. the reason here is digi times has a report out, reliable organization, they report that the -- the shipments of the ipad mini could be down 20-30%. big deal for apple. it's way down. police in boston looking at hours of security camera footage, and they want to see any and all cell phone pictures taken at the time of the bombings. do you have to turn your phone over? can the police just take your if any if there might be evidence on it? what's the situation with your phone and the cops' looking? judge andrew napolitano is here to answer any and all questions there are. the police requested cell phones and video footage; correct? just requested. you'd have a problem if demanded; correct? >> it's the constitution that has the problem if they demand it. the way to demand is to to get a search warrant, and the constitution prohibits scatter shots search warrants.
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you have to identify with particularly what you want, why you want it, and why there's likely evidence of a crime on it. >> you have no problem with the police requesting help with evidence available, no problem at all with that? >> i don't, and the constitution doesn't, but people have to be aware of the situation they are getting themselves in by surrendering what they think is one photograph, but, really, there's more information in here than one photograph. >> we don't want to discourage anybody from trying to help with the investigation; right? >> well, no, no, ouch the public provides information to the provider, but to the police, it's an essential part of the puzzle. >> if i give my little cell phone, give it to the police, they go through it, looking for pictures of the bombing, and they come across me robbing a bank, okay, then what happens? >> they can use that evidence against you to prosecute you for robbing the bank. >> us i have begin them the evidence? >> yes. it's called the plain view
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doctrine basically meaning once the police are lawfully in a police looking for a, if they happen to also see b, they can prosecute you were case b. there's a fire in the house, the fireman puts the fire out, and in the basement, there's a severed head. this is a true case in the 1920s. the owner said they dwnt have a permission to come in to look for that, but it's the plain view doctrine. they were there legally to put the fire outing and just by looking around, and in effort to put the fire out, there's evidence of a crime. same with respect to the phones. >> they are not asking for the physical phone. they are asking for the pictures. >> well, that's why if you have a picture of this, send the picture and only the picture. if you send more than the picture, the police may be able to use that for some other purpose. >> i don't want to invent some invasion of privacy story here when no such exists.
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i don't see anything wrong with the authorities requesting information and help. i see nothing wrong. >> that is a perfectly acceptable police tool. >> yeah. >> asking for photographs. i mean, the area where this tragedy occurred, i don't know if you've been there. i've been there several times. >> i have. >> okay. it's not like the neighborhood like in the middle of new york city in this respect. it is surrounded with surveillance cameras, owned and operated by the boston police department and owned and operated by the corporations that own the buildings there. it is extremely unlikely that the person who did this is not on some surveillance camera privately or publicly owned. requesting that information is lawful. constitutional, and good police practice. >> and you don't expect the requests for the videotape to be rejected? >> no, not for that. there may be other things that would be rejected, requests for cell phone records that the cell phone provider would feel, the
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privacy laws prevent the provider from just turning over requiring the police to have a greater showing of why they need stuart varney's cell phone records. what's the probably cause for your need for mr. varney's record. when you get the cell phone records for which there's a greater expectation of privacy, then walking in the street, you need to make a greater showing of why you need it. >> okay. the british started this, london is covered with surveillance cameras, operated by the police. >> well, you don't have a fourth amendment. >> no. >> you no longer have the right to privacy in great britain. >> how do you feel about walking around a big city like london where you are on camera, and somewhere in the region of 500 times a day. >> the reason i smile is because we have been agreeing so wonderfulfully on everything discussed hereto jr. fore. >> yes. >> i think big brother is repellant, and i don't want to be watched. i don't want to live in a
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society where the government knows my every move. >> you said in the square where the bombing occurred in boston, that's what happened. >> you asked if i liked it, not if it's constitutional. it's constitutional for the government to put cameras in the streets, but that leads us to east germany, big brother. >> you do? >> i do. i really do. here's what it leads to. it leads to you witnessing me doing something wrong and not reporting it, and then you will be prosecuted for not reporting it. in east germany, it was a crime to fail to report a crime, and that was the most prosecuted crime. >> chilling. >> you always get good towards the end like it did today. judge, thank you very much indeed. sorry we're out of time. >> pleasure, stuart. >> the supreme court considering the case whether a country can patent a human gene. we have a doctor and a lawyer. that's both sides of the argument, and they are next. girl vo: i'm pretty conservative.
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how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ >> the supreme court considers the case whether a company can patent human genes. that's myriad genetics, and the man representing myriad in the case is greg gri who joins us now and dr. mark siegel with the other side of the story. we have limited time. just give my 30 seconds on why
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you think that company you represent should be able to patent the human gene. go. >> good morning, stuart. if i told you i invented a substance that could be used to determine whether your wife or daughters have an increased risk because of the jet nicks of breast or ovarian cancers, that's an important invention. fact is here, the invention here happens to be a newly created isolated genetic material to be used for those purpose. they allow purposes on those substances now for over 30 years. >> so it's not pa tenting a gene, but patenting genetic material; is that correct? not the full gene; is that right, gregory? >> you have it generally right. it is called an isolated human gene because it's defined as well as produced by human inventers.
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that's what patent code is designed to protect. >> it's not a product of nature. you are talking about manmade; correct, gregory? >> that is correct. >> okay. doctor, what do you have against a manmade molecule, genetic material which could be a benefit to us all be patented? >> i want to say it's a treatment for us. part of what he says, i agree with. most of it, i disagree with. look, genetic abnormalities, and things are person to person. when we generate a treatment from that, talking about breast cancer, but what's on the table with the supreme court would not do that. it's a step away. take it to the next step and patent that. take this molecule, this created molecule, and create from it a treatment that will help against breast cancer, patent that. do not patent the genetic part of it. >> why not? why can't you patent the genetic part of the molecule, go?
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>> them you patent everything. once you allow people to patent this part of the molecule that's the gene, and that is not defined as a treatment, who is to say i can't pa tent your nose? little different shape than mine? who is to say i can't patent of color of the eyes? i think we have to stay away from what's identified as human chemistry or human genetics. >> gregory, a response to that, please. >> well, simply put, neither you stuart nor myriad genetics created your nose nor the color of the eyes. that is a bit of a strong man argument to make here. look, what myriad did is it was the first one to define what we now know as the braca one and two genes made in the laboratories, now used for diagnose not tick purposes to determine whether or not women in our lives have mew tigses on -- mutations on their genes
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predisposing them to the cancers. >> to the exact point. by the way, myriad genetics does great work. the genes are tremendous findings. it's the text derived that is patentable. >> are you saying if we patent the jeans that gregory talkedded about, that myriad produced, it is a slippery slope? >> absolutely, where do you draw the line? we have genetic differences. we have differences that we're going to use for therapeutics in days to come under personalized medicine: that's in the future. >> i got to follow this up. if we cannot pa tent the myriad gene talked about, doesn't that put an end to a great deal of research, which is very promising for the future? >> i certainly hope not. >> but it could? >> myriad genetics moves on to create the treatment and patent those. there's a lot of money to be made here. i don't think that that will be
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the kiss of death at all. >> gregory, you would not be satisfied with backing off a little and patenting the treatment using the gene. >> or the test. >> or the test that you have created, wouldn't be satisfied with that? >> well, that's not enough here, and, in fact, if the genes themselves were invalid, hard to see how the tests are more valid under the analysis our opponents offered to the supreme court. look, myriad genetics invested over $5 million to create the molecule, and took that much investment to break even. patent allows for private investment to make these life saving opportunities. universities and public-minded scientists are simply not going to have the means or the incentive to do the sort of work, the live saving work thaa myriad's done here. >> gregly, i'm told, i was not there, obviously, but i'm told that the conversation in the spreerm court around this issue was negative to your side of the
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argument, that they were not listening. they were not positive in your direction; is that true? >> i'm not sure that i read it that way at all. i think the courts struggle with trying to understand genetics, which is not the easiest thing for mere mortals like me or them to understand, and one of the things that i think the court was very receptive to is the fact that the patent office has for over 30 years made the determination and issued tens of thousands of patents on these sorts of invengeses, and ruling at this point against them would retroactively take away those companies and those inventers' property rights. >> gregory, relistened carefully to this and appreciate the input, and, doctor, as well. it's a fascinating discussion, of great importance to the future. yes -- gentlemen, thank you very much for being here. appreciate it. >> thank you.
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>> breaking news on the mail-ins. rich edison, what do you have? >> a letter went to president obama, this is from the justice producer, fox news' mike levine, in the bulletin, one letter sent to senator wickers that had preliminary tested positive for ricen. they are going through that. the analysis of the second letter sent to president obama is unknown. the bulletin goes on to say that both envelopes were postmarked out of memphis tennessee, april 8th, 2013, and enclosed in the letters, had identical language saying to see a wrong and not expose it is become a silent partner to its continuance. both letters signed i am kc, and i approve this message. identical letters sent to wicker, republican of mississippi, and president obama according to the fbi bulletin obtained by fox news. >> richard, we're reminded of the anthrax attack days after
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9/11. i'm not suggesting a connection then or a connection now between boston and ricen, but the timing, the coi understand dense of that timing strikes me as very, very interesting indeed. rich edson with the latest there. appreciate it. thank you very much, indeed, sir. back with more after this message. ♪ friday night, buddy. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards
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apple. a 52-week low earlier, down 406 right now. here's the reason. digi times reports that ipad mini shipments may be down 20% to 30%. a lack of demand. apple stock down 42 #%, hitting the high late last year, 406 on apple now. gas prices down just a little bit more overnight. national average for regular coming down 3.51, roughly seven cents down in seven or eight days. price of oil implies that gas is going to drop more. $87 a barrel, up a buck-43 now. keeping watch on gold today, of course, the price crashed. i used that word advisedly this week, up today, but only by a buck, still way shy of 1400. natural gas school busses next.
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(train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. >> you know, dea, i own one of the tractors, and the stock is down. why? >> we were talking about so much about caterpillar, both in the same business, earth moving equipment, the global indicators. as we see caterpillar to the downside, and downgrades there, we see john deere also to the downside, down 1.5%, obviously, in sympathy with the global economy, and the story that does not get in the same -- the high hopes of equipment they hoped to get out this is not happening. >> really stumbling. the market, close to breaking below 14,6. almost all of yesterday's gain
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wipedded out. apple close to breaking below $400 a share. down day. next subject. our guest runs natural gas powered school buss. a ceo of student transportation joining us right now in new york city. depp nighs, welcome to the program. >> thank you. >> right. you own or run the largest fleet of natural gas powered busses in america, 400 of them; correct? >> this is the propane so it's lpg, but we run cng vehicles as well too, sure. >> okay. you got these installed in the omaha school district; correct? >> this coming school year, a new contract with them and the mill lard school district there for 500 brand new vehicles,435 # are liquid propane petroleum gas vehicles. these are going to reduce, literally, the carbon footprint for the city of omaha. >> who is subsidizing it?
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>> nobody. us as private enterprise makes the investment. we put a $40* million investment in new equipment, get a contract for seven years, providing the drivers, maintenance, the bus, equipment, everything needed. >> did the government somewhere along the line subsidize the production of the engines or any other part of the whole production process? is there absolutely no subsidy whatsoever, soup to nuts, in this operation? >> these vehicles are made in fort valley, georgia by corporation, a service corporation, the engine is made by rosh clean technology. i don't know they get the subsidy, but it's a program now where you take former gas and diesel engines off. it's going to produce 60% less carbon monoxide around the schools and communities. >> i just want to know if my taxpayer dollar is involved.
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>> no. >> i don't mind, but i'm saying i want to know who is paying for this. >> sure. >> you can't tell me that a fleet of 400 natural gas powered school busses are going to be cheaper when all costs factored in than a gasoline powered school buss or diesel bus. >> absolutely cheaper. >> that's the operating cost. i'm talking about the production, manufacturing, and purchasing cost. >> the capital cost came down lit rally for the vehicles. the demand is there. the product is here. we got, you know, 500,000 school vehicles running across america. the government school districts own 66% of the business. 24 billion dollar industry, 18 billion dollars owned and run by the government. you know, this is a way where private enterprise goes in to invest in schools. it's our capital, we raise them. you know, we go to the market to raise money as the company. >> costs per mile driven, gas,
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natural gas. >> literally a situation where 3.65 a gallon for diesel, a dollar-20, dollar-40 for propane equivalent, huge savings for the schools. >> all right. >> and the taxpayers. >> i will find a subsidy somewhere, believe me. i know it's there. i'm digging, but it's there. >> i can't dpiend it. >> that's right you can't find it. it's us investing into our communities. we think that the schools shouldn't operate the fleets. this is something where we provide low cost capital. we did an operation in texas where we put in the new vehicles, 1.9% if gsh -- financing for ten years. >> yeah, yeah, student of transportation. not bad. [laughter] come back when we got more time. i'll find that subsidy. dennis, thank you very much indeed, appreciate it.
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>> you're welcome. >> how government regulation could be a good thing. what? that's next. if you've got it, you know how hard it can be to breathe and man, you know how that feels. copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder
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>> poisen found in letters to president obama. the story breaking open, and the dow jones average takes another leg down, 14,6 is where we are
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off 150. gold and oil down too. today, the fda's announcing they'll ban all generic versions of oxycotin because abuse reached big proportions. the government steps in to regulate the market to prevent abuse of a drug, yes or no? >> i'm amiss on this. it's tough. a lot of lawmakers say on both sides of the aisle says it is good news, but i'm from the school that people need to control their own behavior. this is one that's complicated, i think. >> it's going to cause the brand oxycotin to go up. >> in price? >> the price. this move saves lives because there's on the street there's abuse of oxycotin, the crushable form, where drug addicts inhale it. it's unfortunate. >> all right. the left politicizing the bombing in the highlight reel, and that's next.
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double volvo. stuart: we promised you the highlight reel. there is bigger news. the ricin story has broken open. it has broken open. charles, i am drawing a parallel between 9/11 anthrax, boston ricin. am i right to do that? charles: we corrected all the way in october of next year. you know what, i think the longer this lingers, i think americans will put up a brave face, but how much longer? stuart: the terror attack in boston and now the ricin

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